Ghana get approval for $3 billion IMF loan facility
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Di International Monetary Fund (IMF) board don approve $3 billion IMF loan facility to Ghana today.
Ghana secure de board approval for $3 billion afta e secure staff level agreement around December last year.
IMF official go release de monies in tranches. De first $600 million drop immediately after de board approval.
De second tranche of $600 million go get approval afta successful review of de first programme, sometime around November or December.
Dem go disburse de remaining loan money in equal tranches of $360 million after IMF successful semi-annual reviews.
But no be everyone dey excited wit dis loan approval. Some economists don tell Ghanaians say make dem no pop Champagne as dis be time to work.
One Economist for University of Ghana, Professor Godfred Bokpin say, “de board approval be good news but we for be cautious… Dis be time for work, de first release na statement of intent, de remaining go be based on performance” he talk.
Background to Ghana IMF loan
In 2022, Ghana economy face one of de most difficult economic challenges sake of poor economic management and external factors like de Russia-Ukraine war.
End of Di one wey oda users dey read well well
De external pressures from Russia-Ukraine cause massive hike in fuel prices, wey affect almost all sectors of de economy.
By December 2022, Ghana inflation rise at all time high of 54.1%.
To cushion de effect of de inflation, IMF staff and Ghanaian authorities bin reach one staff-level agreement on economic policies and reforms of $3 billion for three-year Extended Credit Facility (ECF) around December 2022.
IMF reveal say dia support to Ghana dey target restoring macroeconomic stability and debt sustainability, while protecting de vulnerable, preserving financial stability den laying de foundation for strong recovery.
Stéphane Roudet, Mission Chief for Ghana talk say de money for de bailout go hit Ghana as soon as dem get Executive level agreement.
Wit de current executive level agreement, and first tranche of $600 million, Ghana hopefully dey on track to recovery.
Reforms IMF dey propose
- Ensure sustainability of public finances while protecting the vulnerable.
- Introduction of Structural reforms to support fiscal strategy den ensure durable consolidation.
- Reduce inflation, enhance resilience to external shocks den improve market confidence also be key to de program priorities.
- Also, Bank of Ghana for strengthen dia monetary policy framework den promote exchange rate flexibility to rebuild external buffers.
